Keith Smith has worked 20 days in the month and has almost made it to payday. He has a family member in another province that requires funds to buy food, but he doesn’t have enough right now to send them money. He loans the money to pay to his family and uses a loan shark as its his only available option, he borrows R500. He also pays extra fees to send the voucher to his family member.
At the end of the next month, Keith is told he now owes the loans shark R1000.
He realizes that he does not have the funds to repay the whole R1000, but only R250, the loan shark informs him that because he still owes R750, his next repayment will be R1500.
He is now stuck in a perpetual debt spiral.
Keith Smith has worked 20 days in the month and has almost made it to payday, He has a family member in another province that requires funds to buy food, but he doesn’t have enough right now to send them money.
He now has access to Kaelo Money and realizes that he can either get a cash voucher or food voucher. He accesses a R500 cash voucher and SMS’s the voucher and pin to his loved one.
His loved one received the voucher and redeems it for cash at the local spar. Keith has managed to look after his loved one, avoid loan shark exposure and has achieved this for a fee of less than R40.